EBRD Extends €29 Million Financing for Eurowatt’s Renewable Energy Expansion in Poland

EBRD Extends €29 Million Financing for Eurowatt’s Renewable Energy Expansion in Poland

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is providing a financial package of up to PLN 126.1 million (€29 million equivalent) to support the growth of renewable energy capacity in Poland. The funding will be directed towards the construction of a 31.5 MW windfarm in Grabkowo and sustaining the operations of the 37.5 MW EBRD-financed Orla windfarm. PKO Bank Polski will provide equal co-financing. This investment aligns with Poland’s transition away from coal and will contribute to reducing carbon emissions. It also demonstrates the viability of private renewable energy projects and diversified revenue streams to address funding gaps in the sector. Eurowatt Green Energy Group, the parent company of the project subsidiaries, has extensive experience in renewable energy development and aims to reinvest in further renewables projects, potentially in central and eastern Europe.

(PRESS RELEASE) LONDON, 23-Jan-2024 — /EuropaWire/ — The EBRD is extending a financial package of up to PLN 126.1 million (€29 million equivalent) to Baltic Sea Polska II sp. z o.o. and C&C Wind sp. z o.o. – both subsidiaries of Eurowatt Green Energy Group SA (Eurowatt) – to support the further development of renewable energy generation in Poland.

The Bank’s financing will be split, with up to PLN 80 million (€18.4 million equivalent) destined for the construction and operation of a 31.5 MW windfarm in Grabkowo, and the remaining sum of up to PLN 46.1 million (€10.6 million) extended to sustain the operations of the 37.5 MW EBRD-financed Orla windfarm. The EBRD’s financing will be complemented by equal co-financing from PKO Bank Polski.

The EBRD investment further supports the ongoing energy transition as the country shifts away from its reliance on coal. The continuous development and operation of assets such as the Grabkowo and Orla windfarms are key to the transition of Poland’s energy sector. The addition of the Grabkowo windfarm to the Polish electricity system is expected to generate more than 83 GWh of renewable energy annually, thereby avoiding more than 59,000 tonnes of CO2 emissions per year.

The Grabkowo windfarm proves that private renewable energy projects can be viable without substantial subsidies. It relies on a commercial offtake structure in addition to the government-supported contract-for-difference auction scheme. The investment also showcases how the funding gap for renewable projects can be addressed by combining projects using various revenue streams, to avoid excessive regulatory or market risks.

C&C Wind and Baltic Sea Polska II are special-purpose companies incorporated in Poland and created with the sole purpose of developing, constructing and operating the Orla and Grabkowo windfarms, respectively. They are owned by Eurowatt, which was founded in 1994 and has nearly 30 years of experience in the origination, development, construction and operation of renewable assets and the production of renewable energy in Europe.

In addition to its activities in Belgium, Poland, Portugal and Spain, Eurowatt is an established independent producer of renewable energy in France. It has an overall installed capacity of approximately 500 MW and a development pipeline of more than 1.5 GW. Wholly owned by Virya Energy, Eurowatt drives the group’s onshore renewable energy activities (excluding hydrogen) in Europe.

Virya Energy is a fully integrated platform, active in wind, solar, storage, hydrogen and energy services and has more than 1.2 GW of renewable-energy capacity in operation. Backed by a strong financial capacity to support its growth, Virya Energy aims to accelerate the energy transition by increasing the use of new technologies across the sector.

The financing package concluded will enable Eurowatt to free up and recycle capital and reinvest equity into further renewables projects, including the possibility of more investments in central and eastern Europe.

The EBRD is among the leading institutional investors in Poland. Since the start of its operations there in 1991, the Bank has invested more than €13.9 billion in 515 projects in the country. Supporting Poland’s transition to a low-carbon economy and further developing its capital markets and private sector are two key priorities of the EBRD’s work in Poland.

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SOURCE: EBRD